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What to Watch for at Apple Inc.'s (AAPL) WWDC

Apple Inc.'s (NASDAQ:AAPL) Worldwide Developers Conference (WWDC) will kick off on Monday

Jun 5, 2015 at 9:59 AM
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Apple Inc. (NASDAQ:AAPL) will follow in the recent footsteps of Google Inc (NASDAQ:GOOGL), and host its developers conference -- slated to kick off next Monday, June 8. Traders and techies alike will be keeping a close eye on this week-long (and often sold-out) event, as a number of major developments have been unveiled at past Worldwide Developers Conferences (WWDCs), such as the Mac Pro in 2006, the iPod Touch in 2008, and the iPhone 4 in 2010. This time around, rumors are swirling over what the tech titan may reveal, including:

  • A $10-per-month music streaming service aimed at competing with Spotify and Pandora Media Inc (NYSE:P). While subscribers will have unlimited on-demand streaming, AAPL also plans to offer DJed channels, similar to traditional broadcast stations.

  • An operating system (OS) update. However, speculation is circling this new upgrade to iOS and OS X may be more focused on improving existing behind-the-scenes tools, such as security and performance, as opposed to adding new features.

  • Improved Apple Watch appsComplaints about the Apple Watch -- which debuted earlier this year -- are that apps are slow to upload and that animation is restricted. At the WWDC, AAPL is expected to reveal a software development kit (SDK) for the Apple Watch to assist third-party developers in creating smarter apps.

What is not expected to be addressed at this year's WWDC is an update on Apple TV. Speculation is high that the company won't have any new information on Apple TV until a later date. Apple, meanwhile, has declined to comment.

Technically speaking, the stock has been a beast, with shares of AAPL boasting a nearly 17% year-to-date lead. More recently, the security has been consolidating atop its 20-day moving average since topping out at an earnings-induced record high of $134.54 in late April, and were last seen at $128.96.

In spite of this technical tenacity, put buying has been picking up speed in the equity's options pits. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for example, Apple Inc.'s (NASDAQ:AAPL) 10-day put/call volume ratio of 0.57 rests at a 52-week peak. However, it's entirely possible some of this put buying is a result of shareholders protecting paper profits against a potential pullback.

 

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